Whisky fears as Chancellor eyes duty increase

FEARS are growing that Philip Hammond is set to increase whisky duty in the budget in a move that would wreck the credibility of Scots Tory MPs.

The Chancellor set alarm bells ringing at the conference’s Scottish reception when he failed to mention a freeze on whisky duty as one of the lobbying achievements of the party’s 13 MPs from north of the Border.

Last year, Scots Tory MPs took the credit for a series of “wins” in the Budget, including a freeze on whisky duty.

But Hammond’s failure to mention spirit duty has re-enforced industry fears that the battle to maintain a freeze is lost.

Last year’s freeze meant savings of 8p per bottle of wine and 31p on a bottle of spirits.

Industry figures argue the freeze actually boosts income for the Treasury which is expected to collect £7.7billion from wine and spirit revenues this year, up £140million on the previous year.

A Scotch Whisky Association spokesman said: “The duty freeze on BY TORCUIL CRICHTON Scotch whisky should be at the forefront of the Chancellor’s mind.

“He must have noticed the additional revenue generated from last year’s duty freeze. The freeze has also boosted investment and created jobs in communities across Scotland.

“The Chancellor should continue to support Scotch, not flip-flop on the freeze he announced less than a year ago.”

Hammond will reveal Government spending plans for next year on October 29, exactly five months before Britain is due to leave the EU.

He used his conference speech yesterday to forecast that a Brexit deal with the EU will deliver a boost to the British economy as he called on warring Tories to back the Prime Minister.

SNP MP Brendan O’Hara, chairman of the All-Party Parliamentary Group on Scotch Whisky, said: “The Scottish Tory MPs have once again proven to be all foam and no beer.”